Weekly Option expiration – the plan

This week I have 5 positions that have March 06 weekly Options as part of the trade that will need tending to:

American Express $AXP  I own the 78/80/77 RRCS (submarine basket). I will take stock at $78 and sell Call premium further out & use proceeds to BtC the $80 Calls (the short $77 Puts will go poof)

Baidu $BIDU  I am short the 215/195 Strangle (submarine basket). Hopefully both pieces go poof, keep premium collected

Expedia $EXPE  I own a RRCS involving the $77.5 Calls & $76.5 Puts (the July $87.5 Calls are the other piece). I will take stock at $77.50 and the short Puts should go poof

Fossil Group $FOSL  I am Long stock at $85.01 with a 87/85 Collar. Undecided but likely put on a new Collar

Google $GOOGL  I am long the $525 Calls (other part of Diagonal Call Calendar is the September $550 Calls). Earnings trade. Undecided on what I will do

 

- DM 11:30 AM CST

 

Trading Activity

Home Depot $HD  I initiated an Earnings trade on 2/23: Long February 113/115/108 RRCS. I added a Long Stock piece in P/M on 2/24 at $116.10 and sold this at $117.25 on 2/24 (a tag along trade). I have BtC the $108 Puts, StC the $113 Calls, and adjusted the remaining Short $115 Calls up to the $116 strike. Options Net is now: $3.26 and stock gains of $1.15

Fossil $FOSL  Long stock at $85.01 and added a March 06w Collar for a .09 debit (Submarine Basket)

 

RRCS = Risk Reversal Call Spread
BtC = Buy to Close
StC = Sell to Close

- DM 9:30 AM CST

 

Trading Activity

Skyworks Solutions $SWKS  I adjusted the Short Calls to the August $85 strike (covered calls). Options Net now: -$.68

McGraw Hill $MHFI  I added a March $100 Collar (Fab 5). Options Net now: $4.60

Schlumberger $SLB  I sold the Long Stock piece at $84.80 and BtC the Short $85 Calls. Options Net final: -$.74 and stock gains of $7.917

 

- DM 9:30 AM CST

 

Trading Activity

Priceline Group $PCLN  I traded the stock post-Earnings (one short and one long trade). Gains: $35.50

United Rentals $URI  I added a March 95/90 Collar for a $1.30 credit. Now have a March 95/90/82.5 Collar PS. Options Net improves to: $8.47 and stock gains of $10.15 remain

Marriott $MAR  I adjusted the Short January 2016 $70 Calls and Long April $75 Puts both up to the $80 strike in their respective expiration’s. Now have a Jan 2016/Apr 80/80/70 Collar PS. Options Net shrinks to: -$6.11 and stock gains of $24.49 remain

 

- DM 9:30 AM CST

 

 

Trading Activity

$CF  I have BtC the February $300 Calls and added a Short March 06w/Feb $295 Put Calendar. Options Net shrinks a bit to: $5.46 and stock gains of $18.50 remain

$FMI  I have covered the Short Stock at $48.95 for +$8.87 and unwound the Diagonal Bear Collar for +$13.25. Trade now closed. Options Net final: $7.91 and stock gains of $21.99

$SSYS  I have added Long March 13 weekly $65 Puts (protect Long Stock). Options Net shrinks to: $1.71

$FXCM  I have StC the February $2.50 Calls (speculative trade in the IRA). Options Net final: -$.25

$BIDU  I have StC the March 06 weekly $205 Calls thus leaving me with a Short 215/195 Strangle now for that same expiration. Options Net is now: $5.38

 

BtC = Buy to Close
StC = Sell to Close

 

- DM 10:00 AM CST

 

Trading Activity

Tesla $TSLA  I added a Short Stock piece today as price lost the $212 level (and has since fell under the 50 SMA). The Option trade remains but will likely adjust the lower strike of the Put Ratio before the close (and close the short stock piece)

Generac $GNRC  I went short at $50.07 (post-Earnings) for a fade trade. I covered the short at $47.62 so the trade is now closed

 

- DM 10:10 AM CST

 

Netflix trade review (was for Earnings)

 

NFLX_2

I received a question this week regarding the current $NFLX trade I have on: “why did you do a Put Ratio now?” First, let me give the steps for the trade:

I was Long the January 23w 345/360/310 RRCS into Earnings

After the Earnings pop I proceeded with a plan to take stock at $345 and sell Option premium further out to buy back the Short $360 Calls. I did this by first choosing the June $395 Calls and then one additional adjustment to the September $420 Calls

I Bought back the Short $310 Puts for 3 pennies (freed up margin)

Once the stock began to Flag, it was time to add some protection. For this I chose a Put Ratio:  Long the March 06w $445 Puts and Short both the $420 & $410 Puts. This was done for a $2.65 debit (I spent some of the Option Net I had collected)

By reviewing the Blue Box area you can see the $420 is certainly a sweet spot for the trade

 

- DM 9:45 AM CST

 

 

Trading Activity

Schlumberger $SLB  Earnings this morning, a nice positive reaction. I have adjusted the Short Calls (covered) to the March 13 weekly $85 strike. Options Net shrinks a bit to: $1.16

Netflix $NFLX  With the solid up move today, I have elected to add some Put protection for the Long stock piece now: Long the March 06 weekly 445/420/410 1×2 Split Put Ratio

Centene $CNC (new this week for Earnings). I have StC the February $110 Calls and set a Buy Stop at $113.50 (would be a hedge). The Short 115/100 Strangle remains. Options Net: $3.70

Autonation $AN  (new this week for Earnings). I have unwound the RRCS. Options Net final: $2.52

Stratasys $SSYS  I covered the balance of the Short Stock piece this morning (beat up in A/H yesterday due to lowered pre-lim guidance)

 

- DM 10:15 AM CST

 

Trading Activity

Activity this morning:

Mattel $MAT  Bought the Dip on the pre-lim guidance & CEO departure news. After selling the stock I initiated a Long February 26/28/25 RRCS for a small debit. I have since StC the Long $26 Calls leaving a Short 28/25 Strangle for February. I have set a Buy Stop at $27.90 (would be a hedge)

Bed Bath & Beyond $BBBY  I have adjusted the Long Feb Puts up to the $75 strike (Submarine Basket)

United Parcel $UPS  I have added Short Stock at $102.06 (downgrade news in P/M, this is a hedge, Submarine Basket). I have StC the February 06 weekly $103 Calls for .88 credit thus leaving me with Short $103 Puts for the same expiry

Netflix $NFLX  I have adjusted the Short Calls (covered) to the September $420 strike for a credit. Options Net improves to: $5.20

 

RRCS = Risk Reversal Call Spread
StC = Sell to Close

- DM 10:00 AM CST